It’s been four years since the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act was passed by Congress and signed into law by President Biden. The law allows employees who allege that they have been sexually harassed to sue their employers and perpetrators in court rather than settle the matter through arbitration – even if they signed an employee agreement that mandated arbitration.
President Biden noted on signing the bill into law that mandatory arbitration has historically “shielded perpetrators and silenced survivors.” Further, it has “kept survivors from knowing if others have experienced the same thing.”
A pivotal case in Ohio
This February, an appellate court here in Ohio ruled that the former employer of a man who accused two employees of years of sexual harassment and claimed he was ultimately forced out of his job could not require that the matter be settled in arbitration. This is believed to be the first such Ohio case addressing this federal law.
The plaintiff filed a lawsuit asserting harassment, gender discrimination and retaliation both during and after his employment. His former employer, however, noted that both his employment and shareholder agreements included clauses mandating private arbitration.
The appellate court determined that since some of the alleged illegal actions occurred after the law took effect, the arbitration clauses were void. It ruled that all the employee’s allegations could be handled in court.
When can Ohio employees choose to take a harassment case to court?
Some employees may still choose to use arbitration to settle employment matters for many of the same reasons employers prefer it over going to court. It’s more private, less expensive and more predictable, since the decision isn’t in the hands of a jury or judge.
The appellate court’s ruling clarifies that as long as the alleged harassment occurred after the date the federal law took effect (March 3, 2022), an employee can choose to take the matter to court, even if they signed an agreement that includes a “forced arbitration” clause.
This doesn’t mean, of course, that all employers will abide by this ruling – or even know about it. That’s one reason why it’s crucial that employees who have suffered sexual harassment understand their rights under the law and be able to assert them effectively. Having early and experienced legal guidance can make all the difference.